Akamai Technologies (AKAM): Revenue Growth Acceleration Should Lead To Multiple Expansion - Wells Fargo
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Wells Fargo analyst, Gray Powell, reiterated his Outperform rating on shares of Akamai Technologies (NASDAQ: AKAM) and raised his valuation range to $71.00 to $74.00 from $59.00 to $62.00 after a beat and raise quarter.
The outperformance was driven by strength in the company's Performance and Security segment where growth reaccelerated to 19% yr/yr from 16% - 17% in 1H'16.
Guidance for Q4 revenue and EBITDA was in line with street estimates and the outlook for EPS was fractionally ahead. In short, the analyst thinks that AKAM is in the early stages of driving a
recovery in revenue growth and could improve from 6% yr/yr in Q3 back towards 15% by the end of 2017 which should result in multiple expansion over the next year.
Shares of Akamai Technologies closed at $59.07 yesterday.
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